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If you guessed the hot dog combo, you're absolutely right. The Costco food court's mythical $1.50 hot dog and soda meal is more than a deal. It's a metaphor for the value that the massive retailer offers its members. Costco sells a ridiculous number of hot dogs every year, and 2025 marked the highest amount yet. Per figures released during the company's annual shareholder meeting in January 2026, shoppers bought 245.1 million hot dog and soda combos in the previous fiscal year, which also happens to be the inflation-proof food court offering's 40th anniversary.
As if the sales number wasn't impressive enough, so is its growth. The Costco food court more than 150 million of its iconic combos in 2022 and almost 200 million in 2023. At the time, Chief Executive Ron Vachris had admitted the company "came up a little short" of its 200 million target (via Seattle Times). Come 2025, that goal was significantly surpassed. Meanwhile, the $4.99 rotisserie chicken, which has its own cult following, saw robust sales growth, too. Costco sold 157.4 million rotisserie chickens in the fiscal year 2025, up over 20 million from 2023.
The prices of the hot dog combo and the rotisserie chicken have remained unchanged since 1985 and 2009 respectively. Despite potentially losing money at those price points, Costco has maintained them. It's exactly the kind of thing that keeps those Costco membership renewal rates so high.
How Costco protects its combo price point
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According to CNN, adjusting for the cost of inflation would triple the price of Costco's hot dog and soda combo, making it around $4.50. Seen through that lens, the retailer seems to offer so much for so little. However, it has arguably taken steps to offset financial pressures this price point might cause.
The most significant of these measures was when Costco started producing its own wieners. It set up a factory outside Los Angeles and then another in Chicago. This allows the company to control the food's price and quality. A series of land acquisitions also indicate that the chain has plans to further expand its hot dog production. Another way it may offset the combo's cost is by making other items more expensive. While customers dislike Costco raising prices of food court favorites, such moves can help safeguard the sanctity of the hot dog combo price.
A notable change came when the combo's latter half, the soda, was switched from Pepsi to Coca-Cola in 2025. This has happened before, with Costco picking whichever soda brand turns out to be the most cost-effective. Cumulatively, these measures keep the $1.50 price tag sustainable. Then again, it might not be as big of a financial hassle as it sounds like. One calculation shared by The Motley Fool puts the combo's actual production cost at around $1. If it's somewhere in that ballpark, Costco could be making a slight profit on its most iconic food offering or, at the very least, not taking a loss.